Isn't the whole argument against Tether that they print Tether out of nothing, buy Bitcoin with it, and now have Bitcoin (and increased the price of Bitcoin)?
Actually, the NYAG settlement doesn’t support that conspiracy theory. The investigation found no evidence that Tether printed USDT ‘out of nothing’ to manipulate Bitcoin. The issues raised were about transparency in Tether’s reserves during specific periods when funds were managed by third parties, not about unbacked issuance. Tether has since updated its policies, making clear the types of assets backing USDT.
Comments
Isn't the whole argument against Tether that they print Tether out of nothing, buy Bitcoin with it, and now have Bitcoin (and increased the price of Bitcoin)?
Actually, the NYAG settlement doesn’t support that conspiracy theory. The investigation found no evidence that Tether printed USDT ‘out of nothing’ to manipulate Bitcoin. The issues raised were about transparency in Tether’s reserves during specific periods when funds were managed by third parties, not about unbacked issuance. Tether has since updated its policies, making clear the types of assets backing USDT.